GNCC Capital, Inc. (OTCMKTS:GNCP) Makes a Splash
On Friday the stock of GNCC Capital, Inc. (OTCMKTS:GNCP) took off right out the gate and ended the session 133% up. The ticker pulled itself out of triple-zero land and stopped just a notch higher, at $0.0014 by the bell, shuffling significant share volume.
The move started on Thursday afternoon and was spurred by a press release issued by the company at about the same time. GNCP informed the public that after a very long drought in PR and news posts, they will start chiming in regularly. GNCP also made it clear that there were no plans for a reverse split of the stock.
The company stated that it will update shareholders with its ‘current’ plans for its White Hills property sometime this week. We covered the ticker back in May this year, when the company had just announced its acquisition agreement for the same property. GNCC’s situation has not changed dramatically compared to that point in time. The company’s most recent financial report is for the quarter ended June and lists the following:
- $454 thousand in total assets
- $30 million in total liabilities
- zero revenues since inception
- $10 million in quarterly net loss
The brief rundown of the numbers shows that GNCC hasn’t really gone anywhere compared to the previous quarter, except for swelling debt. The White Hills property cost GNCC $10 million and that payment was secured through a mix of convertible and payment-in-kind notes. The acquisition news didn’t seem to thrill investors as GNCC slipped under a cent per share in July and marches into triple zeroes in late October. The company was also targeted by stock pumps in July and those helped the ticker on its way down.
Sub-pennies are notoriously volatile and the company has a history of pumps, so investors may want to be extra careful and do their own research before making any rash moves.
